positive and negative effects of social globalization

The low-income countries also suffer from low institutional quality in the context of democracy and political rights. Welander, A., Lyttkens, C. H., & Nilsson, T. (2015). Second, empirical works in previous literature consist of traditional estimation methods called first-generation tests. Therefore, the positive impact of globalization on health first emerged with its positive effects on economic growth (Labont et al. This approach is simply based on adding cross-sectional averages to the models as proxies of unobserved common factors. This method considers cross-sectional dependence and can be used, while the series are integrated in the same order. Globalisation is having a dramatic effect - for good or bad - on world economies and . Globalization and poverty (No. Economic Modelling, 28(3), 795805. The results show that a 1% increase in globalization index increases life expectancy %0.014 and %0.015 according to CUP-FM and BA-OLS estimators, respectively. Barlow, R., & Vissandjee, B. This allows business organizations in developed countries to invest in developing countries. Globalization also gives organizations the opportunity to take advantage of lower labor costs in developing countries, while leveraging the technical expertise and experience of more developed economies.With globalization, different parts of a product may be made in different regions of the world. Economic Modelling, 37, 386394. Journal of economic perspectives, 20(3), 97120. Cross-sectional dependency simply refers to the situation when the shock that occurs in one country affects other countries as well. Achieving a healthier society requires economic, social, and political integration between governments and societies. Therefore, in order to make a methodological contribution to previous literature, we used second-generation panel time series methods considering cross-sectional dependence. Journal of Econometrics, 142(1), 5093. We measure individual involvement with global networks and local, national, and global social identity through a questionnaire. Econometrica, 74(4), 9671012. Economic Growth It's widely believed that increased globalization leads to greater economic growth for all parties. Compared to theoretical discussions, previous literature provides a lack of empirical evidence. Moreover, this effort supports economic growth in developing countries. Particularly rising sexual tourism and migrant sex workers increase the spread of sexually transmitted diseases such as HIV/AIDS. - 43.231.112.109. The previous literature provides a lack of evidence in the context of globalization, democracy, and life expectancy relationship. Socially, globalization has facilitated the exchange of ideas and cultures, contributing to a world view in which people are more open and tolerant of one another. The Silk Road, an ancient network of trade routes used between Europe, North Africa, East Africa, Central Asia, South Asia, and the Far East, is an example of early globalization. 71112. Globalization can play an important role in improving the health conditions of low-income countries to the extent that it can provide these linkages. If a media asset is downloadable, a download button appears in the corner of the media viewer. Bingley: Emerald Group Publishing Limited. Due to the high cost of advanced drugs as in the case of antiretroviral therapy, it should be accepted that people in low-income countries will have trouble accessing the drugs (Buss 2002). Another global subgroup comprises cosmopolitans who nurture an intellectual appreciation for local cultures. After the preliminary analysis of cross-sectional dependence, the CADF unit root test developed by Pesaran (2007) is found to be appropriate for our model because of its robustness under cross-sectional dependence. Environ Dev Sustain 23, 1350813525 (2021). There is a long-run relationship between life expectancy, globalization, democracy, and GDP per capita. & Acaravci, A. The Review of International Organizations, 14, 543574. Technology, goods, investments, information, and services along with the labor market are the most popular components of such activity. This makes governments more accountable in the global area and forcing them to pay attention to protect human rights. As Deaton (2004) mentioned before, access to cheap and easy travel can increase the rate of spread of communicable diseases. Pesaran MH (2004) General diagnostic tests for cross section dependence in panels. Journal of Financial Econometrics, 5(3), 491522. (2019). While the differences between the levels of development of countries determine the health conditions, at the same time, improvement of public health paves the way for economic development. From nonrenewable to renewable energy and its impact on economic growth: The role of research & development expenditures in Asia-Pacific Economic Cooperation countries. Positive and Negative Effects of Social Media in Globalization The massive number of ideas that people share through such platforms as Twitter and Facebook has noticeably influenced a change in lifestyles, preferences, political ideologies and academic achievements, both for the positive and negative. In contrast, the pessimists show that globalization is quite uneven in its impact and gives rise to negative counter-effects on the previously protected sectors, the marginalisation of entire regions of the world economy and possible increases in within-country income inequality (WCII). OECD Economic Studies, 1, 5378. Product sales These days we experience the coronavirus epidemic and we see once again the importance of globalization. The impact of economic, social, and political globalization and democracy on life expectancy in low-income countries: are sustainable development goals contradictory?. The journal of Developing areas, 41, 185204. 4. Africa: The World Bank. Negative Aspects of Globalization Outsourcing, while it provides jobs to a population in one country, takes away those jobs from another country, leaving many without opportunities. They are said to follow a recognizable lifestyle, are instantly identifiable anywhere in the world, and feel more comfortable in each others presence than they do among their less-sophisticated compatriots. (2019b). The dataset is consisting of a weighted average of collected data from several co-founders. However, it was emphasized that some sub-goals should be realized in order to reach this goal. Pesaran and Yamagata (2008) proposed a method to examine slope heterogeneity in panel data analysis based on the Swamy (1970)s random coefficient model. Those countries are Benin, Burkina Faso, Burundi, Central African Republic, Chad, Democratic Republic of Congo, The Gambia, Haiti, Madagascar, Malawi, Mali, Nepal, Niger, Rwanda, Sierra Leone, and Togo. In this sense, it can be said that the evidence we found for low-income countries is in line with the author's evidence. Globalization refers to the increasingly integrated nature of economies around the world. On the relationship between globalization and life expectancy. American Economic Review, 105(5), 100104. Because of the pressure on the government about human rights, disadvantaged people are becoming able to meet their basic human needs. These results show that the methods to be used in the analysis of the stationarity of the variables and the determination of the long-run relationship should consider the cross-sectional dependence. In this study, we investigated the role of globalization and democracy in life expectancy in 16 low-income countries.Footnote 1 Following Barlow and Vissandjee (1999) and (2000), GDP per capita is used as a control variable in order to mitigate omitted variable bias. The results of the CADF unit root test are given in Table 3. CESifo Working Paper (No. Polity IV Project: Political regime characteristics and transitions, 18002002: Dataset users manual. In addition to positive aspects globalization in this day also exist some hidden risks. Tausch, A. Social scientists have identified the central aspects of globalization as interconnection, intensification, time-space distanciation (conditions that allow time and space to be organized in a manner that connects presence and absence), supraterritoriality, time-space compression, action at a distance, and accelerating interdependence. Critics also suggest that employment opportunities for children in poor countries may increase negative impacts of child labor and lure children of poor families away from school. Australian Economic Papers, 58(4), 444479. Consumers also have access to a wider variety of goods. Another linkage can be established through accountability (Besley and Kudamatsu 2006). Localisation opportunities provide direct benefits for developing countries to . Therefore, in order to determine the existence of a long-run relationship, we applied Westerlund and Edgerton (2007) panel cointegration test. 2019b). If the calculated LM statistic is below the critical value, the null of cointegration will be accepted. Finally, gdp is real GDP per capita (constant 2010 $) and it is provided from World Bank World Development Indicators. Pesaran, M. H., & Yamagata, T. (2008). Determinants of health outcomes in industrialized countries: A pooled, cross-country, time-series analysis. The effects of globalization on growth were mostly driven by free trade, international specialization, technology transfers, knowledge spillovers, and competitive markets. As part of the North American Free Trade Agreement (NAFTA), U.S. automobile companies relocated their operations to Mexico, where labor costs are lower. Individuals living in developed countries live a healthier life compared to those living in less developed countries. Democracy also refers to accountability levels of governments. https://doi.org/10.1007/s10668-021-01225-2, DOI: https://doi.org/10.1007/s10668-021-01225-2. Empirical results show democracy has a significant positive impact on life expectancy and it reduces infant mortality. Testing for cross-sectional dependence in panel-data models. The effects of globalization on growth were mostly driven by free trade, international specialization, technology transfers, knowledge spillovers, and competitive markets. National Geographic Society is a 501 (c)(3) organization. There are also methodological weaknesses in previous empirical studies. Therefore, estimators assume parameter homogeneity are used in our analysis. (1999). Thus, resources can be allocated to solve important public issues such as quality of life, communicable diseases, and mortality. Patterson and Veenstra (2016) concluded that electoral democracies provide better health conditions compared to other countries. In the selection of stationarity tests and long-run estimators, the existence of cross-sectional dependence will be decisive. While the increases in this indicator represent a more democratic regime, the decreases represent a more autocratic regime. Canadian Journal of Development Studies/Revue canadienne dtudes du dveloppement, 20(1), 929. Following the related literature, we present our model as follows: where lex is life expectancy at birth which refers to the average number of years a newborn is expected to live. In low-income countries where people still suffer from having difficulty in meeting basic human needs, increasing per capita income may lead to better nutritional status, easier access to advanced treatment methods and technology. After the preliminary analysis of unit root, the existence of a long-run relationship between the variables in our model will be investigated via Westerlund and Edgerton (2007) cointegration test. GlobalizationPositive or Negative? Zafar, M. W., Shahbaz, M., Hou, F., & Sinha, A. Improved fiscal policies within countries and international trade agreements between them also facilitate globalization. Or, Z. According to results, the null of unit root is accepted for all variables, while calculated CIPS statistics of first-differenced variables exceed 1% critical value. Please select which sections you would like to print: Fairbank Professor of Chinese Society and Professor of Anthropology, Harvard University. Our empirical work also supports the evidence of Bergh and Nilsson (2010) in terms of positive effect of economic globalization on life expectancy. Estimating cointegrated panels with common factors and the forward rate unbiasedness hypothesis. Since the start of civilization, people have traded goods with their neighbors. Bai, J., & Kao, C. (2006). Text on this page is printable and can be used according to our Terms of Service. This poor performance is in part due to social and political instability and with conflicts between the rights of individuals verses the interest of cultural groups. (2016). For information on user permissions, please read our Terms of Service. However, this assumption is hard to satisfy due to rising economic, social, and political integration between countries. Their analysis includes annual data from 168 countries covering the period 19602010. Thus, unhealthy but traditional consumption patterns and lifestyles may change. Owen and Wu (2007) found a positive relationship between trade openness and health outcomes using a panel of 219 countries. As the standard of living increased, more children of poor families left work and attended school.Consumers benefit too. Following this study, Or (2000) analyzed the determinants of health outcomes in 21 industrialized OECD countries covering the period 19701992. Therefore, the main purpose of this study is to investigate whether two sustainable development goals (SDGs) of the UN are contradictory or supporting each other in low-income countries. Bulletin of the world Health Organization, 79, 827833. Health in an age of globalization (No. But today there are improved treatment methods to solve these problems. Another group stems from the rise of a transnational workforce. The main problem of economics is to increase economic development and social welfare. The source of this problem encountered in panel data analysis is the economic, financial, and political integration among countries (Menyah et al. New York: Knopf. A reinvestigation of EKC model by ecological footprint measurement for high, middle and low income countries. CAS Journal of cleaner production, 188, 144157. A simple panel unit root test in the presence of cross-section dependence. International Journal of Health Services, 36(4), 767786. Besides being one of the indicators of development, it is one of the determinants of human capital formation which is necessary for economic development. (2019) investigated the impact of globalization, financial development, and economic growth on life expectancy. Gives Access to a Larger Market Through globalization countries and companies have access to a bigger consumer base. BLM Factors related to globalization can also cause workers to migrate from their homelands in poorer countries to more developed countries to find work. Empirical results obtained are the opposite of the expected. The impact of income inequality, environmental degradation and globalization on life expectancy in Pakistan: An empirical analysis. (2008) bias-adjusted LM test. Social globalization also provides cultural integration among the worlds people, and it changes lifestyles and consumption patterns worldwide. When you reach out to him or her, you will need the page title, URL, and the date you accessed the resource. The authors used nonlinear time series analysis methods utilizing the data of 16 Sub-Saharan African countries over the period 19702012. One should also notice that wider markets and higher returns are important factors that motivate entrepreneurs. Does globalization affect growth? This appears, however, to be an overstatement of the phenomenon. Baltagi, B. The positive and negative impacts of globalisation on culture are found in global understanding, cultural identity enhancement and loss of uniqueness. It is also important to examine this relationship in low-income countries since they still suffer from low levels of life expectancy, less adaptation to globalization, and poor democratic institutions compared to other income groups. In order to achieve SDG3, economic, social, and political integration between countries should be encouraged and democratic institutions should be improved. New New technologies which emerge in some developed country are available to other poor and underdeveloped On a global view, although health-related problems are largely resolved, the situation is not as good for low-income countries. Globalization is most often used in an economic context, but it also affects and is affected by politics and culture. 5. Positive and negative consequences of globalisation Some would argue that globalisation has spread wealth and led to the improvement of standards of living in newly-industrialised countries.

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